JSX spares Kalla-linked Bukaka from delisting

Rendi A. Witular, Jakarta

The Jakarta Stock Exchange (JSX) has dropped a plan to delist construction and engineering company PT Bukaka Teknik Utama, which is linked to the family of incoming vice president Jusuf Kalla, as the company's operation is still considered sustainable.

JSX president Erry Firmansyah told The Jakarta Post recently that the bourse had studied the company's performance and decided to extend its listing to give some time for the company to undergo restructuring.

"We have decided not to delist Bukaka right now. We are still giving it a grace period to improve its performance. The decision was not taken because Jusuf Kalla will be the future vice president. We are not afraid of that," said Erry.

Kalla is the running mate of presidential candidate Susilo Bambang Yudhoyono, who is almost certain to become president. The JSX website names members of the Kalla family on the board of directors and commissioners, with Kalla alone still holding 0.01 percent shares in the company.

In July, the JSX announced that it would delist Bukaka, along with engineering company Texmaco Perkasa Engineering, plastic producer PT Wahana Jaya Perkasa and infrastructure company PT Siswani Makmur.

The delisting threat was made due to the failure of the companies to comply with capital market regulations or because of difficulties with their business operations.

Bukaka shares had been suspended for more than one year, following a "disclaimer" opinion given by the company's auditor Ernst & Young on its financial performance for four consecutive years.

Bukaka defaulted on some US$152 million in debts due to the impact of the Asian financial crisis in late 1997. The company is currently still seeking settlement with its creditors over the debts.

Many have often complained over the lack of law enforcement by the JSX management and the Capital Market Supervisory Agency (Bapepam) toward listed companies that fail to comply with the regulations, especially state enterprises and those that have huge market capitalizations or those that have close connection with government officials.